The price elasticity of demand will increase with the length of the period to which the demand curve pertains because
A) consumers will be better able to find substitutes.
B) consumers' incomes will increase.
C) advertising will have more time to take effect.
D) the demand curve will shift outward.
E) the arc elasticity of demand will decline.

Question

Quizplus · Accepted Answer

As the length of the period increases, consumers have more time to find alternatives, which makes them more sensitive to the change in price, and thus, the price elasticity of demand increases.

The Price Elasticity of Demand Will Increase with the Length